BTC Eyes $60,000 Breakout Amid US BTC-Spot ETF Inflows and Rising Fed Rate Cut Hopes

BTC Eyes $60,000 Breakout Amid ETF Inflows

On Saturday, August 17, BTC gained 1.20%, following a 2.31% rise on Friday, August 16, closing at $59,623. The total crypto market cap increased by 1.13% to $2.051 trillion.

US BTC-Spot ETF Market Inflows Counter Oversupply Risk

In the week ending August 16, the US BTC-spot ETF market recorded total net inflows of $32.4 million, ending a two-week outflow streak.

• Grayscale Bitcoin Trust (GBTC) saw total net outflows of $195.2 million, impacting total net inflows.
• Fidelity Wise Origin Bitcoin Fund (FBTC) saw total net inflows of $82.1 million.
• iShares Bitcoin ETF (IBIT) had total net inflows of $71.1 million.
• ARK 21Shares Bitcoin ETF (ARKB) reported total net inflows of $35.9 million.

Notably, the US BTC-spot ETF market saw total net outflows of $81.4 million on Wednesday, August 14, following news of the US government transferring 10,000 BTC to a Coinbase (COIN) wallet. The BTC transfer fueled concerns about a possible large sell order, which may affect BTC supply and demand trends.

Oversupply could push BTC toward $55,000.

However, rising hopes for multiple 2024 Fed rate cuts and a soft US economic landing eased oversupply jitters, driving BTC-spot ETF demand.

Next week, the focus will shift to US jobless claims, the services PMI, the FOMC Meeting Minutes, and speeches from the Jackson Hole Symposium. Upbeat labor market and service sector activity and support for multiple 2024 Fed rate cuts could boost BTC demand. BTC could target $70,000 in a risk-on environment.

Nonetheless, investors should monitor the US government and Mt. Gox’s activity. The US government currently holds 203,239 BTC ($12.08 billion), while Mt. Gox retains 46,164 BTC ($2.75 billion) for creditor repayments.

Expert Views on Crypto-Spot ETFs

ETF Store President Nate Geraci highlighted the significance of iShares Bitcoin ETF flow trends, saying,

“iShares Bitcoin ETF has *one* day of outflows since launching in January…$20.5bil inflows. Top launch of 2024. This is exactly what “no demand” looks like.”

Investors should remain alert amid possible changes to supply-demand trends. Stay updated with our latest news and analysis to manage exposure to BTC and the broader crypto market.

Technical Analysis

Bitcoin Analysis

BTC sat above the 200-day EMA while remaining below the 50-day EMA, sending bearish near-term but bullish longer-term price signals.

A break above the $60,365 resistance level could support a move toward the 50-day EMA. Furthermore, a breakout from the 50-day EMA could give the bulls a run at the $64,000 resistance level.

Supply-demand trends require consideration on Sunday.

Conversely, a drop below the 200-day EMA could give the bears a run at $55,000. A fall through $55,000 could bring the $52.884 support level into play.

With a 47.06 14-Daily RSI reading, BTC may drop to the $55,000 handle before entering oversold territory.

Ethereum Analysis

ETH sat well below the 50-day and 200-day EMAs, confirming the bearish price trends.

An ETH breakout from the $2,664 resistance level could give the bulls a run at $2,800. Furthermore, a return to $2,800 could bring the 50-day EMA and the $3,033 resistance level into play.

US ETH-spot ETF market-related news also requires consideration.

Conversely, an ETH break below $2,500 could give the bears a run at the $2,403 support level.

The 14-period Daily RSI reading, 39.75, indicates an ETH drop to the $2,403 support level before entering oversold territory.